ENDORSEMENT GUIDE - Republic Title

1 ENDORSEMENT GUIDEA BRIEF OVERVIEW OF ALTA Title INSURANCE ENDORSEMENTS 2020 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF1 ACKNOWLEDGMENTS Special thanks are due to Paul R. Liszewski, Vice President and Senior National underwriting Counsel in the Chicago, Illinois office of First American s National Commercial Services Division. Paul s extraordinary vision and passion for this publication as its author and editor-in-chief over many years are what have established it as a go-to resource for Title professionals, customers, and even scholars. For all the dedication he has given to it, this GUIDE is in turn dedicated to Paul. All publications of the American Land Title Association , including ALTA p olicy forms, endorsements and related documents, are copyrighted and are reprinted herein by specific permission from: American Land Title Association (ALTA ) 1800 M Street, , Suite 300S Washington, 20036-5828 Phone: Email: Web: The content of this ENDORSEMENT GUIDE is for information only.

2 It should not be relied upon for legal advice or any other purpose. The endorsements presented herein are subject to underwriting and other requirements of First American, and may not be available in all states or for all transactions. Please contact your local First American representative with any questions you may have. First American, the eagle logo, First American Title , and are either registered trademarks or trademarks of First American Financial Corporation. 20 20 First American Financial Corporation and/or its affiliates All rights reserved. NYSE:FAF2 3 FOREWORD The basic coverages provided by the standard American Land Title Association (ALTA) Title insurance policies address many common Title insurance needs. Often, however, certain insureds or certain aspects of a specific real estate transaction raise special concerns.

3 By requesting an ENDORSEMENT to the Title insurance policy, an insured owner or lender may be able to receive insurance against the risk of a matter that is beyond the coverage of the standard policy jacket. Over the years, various endorsements have been drafted in an effort to address many common concerns. ALTA has standardized and adopted many ENDORSEMENT forms that are available for use generally by the Title insurance industry. This GUIDE is intended to serve as an introduction for our customers to the most commonly-requested ALTA Title insurance endorsements in today s market. It contains the text of each such ENDORSEMENT as adopted by ALTA and is followed by a brief explanation and commentary. You can also speak with your underwriter about other non-ALTA endorsements that may be available to meet your needs and concerns.

4 As you review this GUIDE , please keep in mind that due to matters such as governmental regulatory standards and local practices First American s ability to approve and issue any of the endorsements contained in this GUIDE may vary from state to state and, in some cases, even by locality. In addition, particular transactions may present special risks that might require additional clearance or requirements other than those that are contemplated herein. Also, remember that this GUIDE by attempting to describe various coverages using non-legal terminology whenever possible is not and cannot be a determinative explanation or interpretation of the coverages provided. Nor can this GUIDE be an authoritative compilation of the underwriting requirements for issuing any particular ENDORSEMENT ; underwriting requirements frequently vary by transaction, and your underwriter can help explain the appropriate issuing criteria for endorsements in any particular transaction.

5 It s also important to remember that an ENDORSEMENT becomes part of the Title insurance policy, and the coverage provided by an ENDORSEMENT must be read together with the other terms and provisions contained in the policy jacket. In short, please remember that the language of each ENDORSEMENT must speak for itself, and each transaction must be underwritten on its own facts. First American Title thanks you for your interest and welcomes the opportunity to serve your real estate needs. If you have any questions about the material in this GUIDE , or about our real estate services, please contact your local First American Title representative for more information. Thank You! For additional copies of this GUIDE , please contact your local First American Title sales representative.

6 4 TABLE OF CONTENTS ALTA ENDORSEMENT 1-06 (Street Assessments) .. 1 ALTA ENDORSEMENT 3-06 (Zoning Unimproved Land) .. 3 ALTA ENDORSEMENT (Zoning Completed Structure) .. 5 ALTA ENDORSEMENT (Zoning Land Under Development) .. 7 ALTA ENDORSEMENT (Zoning Completed Improvement Non-Confirming Use ENDORSEMENT ) ..11 ALTA ENDORSEMENT (Zoning No Zoning Classification ENDORSEMENT ) ..15 ALTA ENDORSEMENT 4-06 (Condominium Assessments-Priority) .. 19 ALTA ENDORSEMENT (Condominium Current Assessments) .. 21 ALTA ENDORSEMENT 5-06 (Planned Unit Development Assessments Priority) .. 23 ALTA ENDORSEMENT (Planned Unit Development Current Assessments) .. 25 ALTA ENDORSEMENT 6-06 (Variable Rate Mortgage) .. 27 ALTA ENDORSEMENT (Variable Rate Mortgage Negative Amortization).

7 29 ALTA ENDORSEMENT 7-06 (Manufactured Housing Unit) .. 31 ALTA ENDORSEMENT (Manufactured Housing Conversion; Loan) ..33 ALTA ENDORSEMENT (Manufactured Housing Conversion; Owner) .. 35 ALTA ENDORSEMENT (Environmental Protection Lien) ..37 ALTA ENDORSEMENT (Commercial Environmental Protection Lien) .. 39 ALTA ENDORSEMENT 9-06 (Restrictions, Encroachments, Minerals Loan Policy) .. 41 ALTA ENDORSEMENT (Covenants, Conditions and Restrictions Unimproved Land Owner s Policy) .. 45 ALTA ENDORSEMENT (Covenants, Conditions and Restrictions Improved Land Owner s Policy) ..47 ALTA ENDORSEMENT (Covenants, Conditions and Restrictions Loan Policy) ..51 ALTA ENDORSEMENT (Private Rights Loan Policy) .. 55 ALTA ENDORSEMENT (Private Rights Current Assessments Loan Policy).

8 57 ALTA ENDORSEMENT (Restrictions, Encroachments, Minerals Loan Policy) .. 59 ALTA ENDORSEMENT (Covenants, Conditions and Restrictions Land Under Development Owner s Policy) .. 63 ALTA ENDORSEMENT (Private Rights Owner s Policy) .. 67 ALTA ENDORSEMENT (Restrictions, Encroachments, Minerals Current Violations-Loan Policy) .. 69 ALTA ENDORSEMENT 10-06 (Assignment) .. 73 ALTA ENDORSEMENT (Assignment and Date Down) .. 75 ALTA ENDORSEMENT 11-06 (Mortgage Modification) .. 79 ALTA ENDORSEMENT (Mortgage Modification with Subordination) .. 81 ALTA ENDORSEMENT (Mortgage Modification with Additional Amount of Insurance) .. 83 * Bold indicates a new or revised ENDORSEMENT as of December 2018. 5 ALTA ENDORSEMENT 12-06 (Aggregation Loan Policy) .. 87 ALTA ENDORSEMENT (Aggregation State Limits Loan Policy).

9 91 ALTA ENDORSEMENT 13-06 (Leasehold Owner s) .. 95 ALTA ENDORSEMENT (Leasehold Loan) .. 99 ALTA ENDORSEMENT 14-06 (Future Advance Priority) .. 103 ALTA ENDORSEMENT (Future Advance Knowledge) .. 107 ALTA ENDORSEMENT (Future Advance Letter of Credit) .. 111 ALTA ENDORSEMENT (Future Advance Reverse Mortgage) .. 115 ALTA ENDORSEMENT 15-06 (Non-imputation Full Equity Transfer) .. 119 ALTA ENDORSEMENT (Non-imputation Additional Insured) .. 121 ALTA ENDORSEMENT (Non-imputation Partial Equity Transfer) .. 123 ALTA ENDORSEMENT 16-06 (Mezzanine Financing) .. 125 ALTA ENDORSEMENT 17-06 (Access and Entry) .. 129 ALTA ENDORSEMENT (Indirect Access and Entry) ..131 ALTA ENDORSEMENT (Utility Access) .. 133 ALTA ENDORSEMENT 18-06 (Single Tax Parcel).

10 135 ALTA ENDORSEMENT (Multiple Tax Parcel) .. 137 ALTA ENDORSEMENT (Multiple Tax Parcel) .. 139 ALTA ENDORSEMENT (Single Tax Parcel & ID ENDORSEMENT ) .. 141 ALTA ENDORSEMENT 19-06 (Contiguity Multiple Parcels) .. 143 ALTA ENDORSEMENT (Contiguity Single Parcel) .. 145 ALTA ENDORSEMENT (Contiguity Specified Parcels) .. 147 ALTA ENDORSEMENT 20-06 (First Loss Multiple Parcel Transactions) .. 149 ALTA ENDORSEMENT 22-06 (Location) .. 151 ALTA ENDORSEMENT (Location and Map) .. 153 ALTA ENDORSEMENT 23-06 (Coinsurance Single Policy) .. 155 ALTA ENDORSEMENT (Coinsurance Multiple Policies) .. 159 ALTA ENDORSEMENT 24-06 (Doing Business) .. 163 ALTA ENDORSEMENT 25-06 (Same as Survey) .. 165 ALTA ENDORSEMENT (Same as Portion of Survey) .. 167 ALTA ENDORSEMENT 26-06 (Subdivision).